An increase in business investment helped French economic growth accelerate in the third quarter of 2005, official figures showed today.
Gross domestic product (GDP) rose 0.7 per cent in the third quarter from the second, national statistics office INSEE confirmed. Business investment increased by 1.8 per cent, revising up an earlier reported rise of 1.1 per cent.
The latest figures confirm earlier reports of strengthening activity in the economy.
The upward revision in business investment bucked the downbeat tone of a survey INSEE published last November that forecast industrial investment would decrease by 1 per cent in 2005.
The overall third quarter growth rate marked an acceleration from the 0.1 per cent quarterly rate at which GDP rose in the second quarter of 2005.
INSEE said given the third-quarter growth rate, economic growth for 2005 would amount to 1.5 per cent if there was no growth in the rest of the year. It had previously forecast 1.4 per cent annual growth with no further growth in 2005.
INSEE revised down the amount by which exports grew to 3 per cent from 3.1 per cent previously reported.
Last month, INSEE forecast the French economy would grow by 1.6 per cent in 2005. The government is forecasting growth in 2006 of 2 to 2.5 per cent.